How To Estimate The Value Of A Classic Car

Estimating the value of a classic car is a bit of an art form. Like any skill, you will get better at estimating values the more you practice. Learn how to navigate the NADA guide and consider restoration costs. Get the history information on the classic car you are looking to buy. Check the paperwork and develop your instincts. These tips will help you choose the right cars at the right price to add to your growing auto collection.

Learn how to navigate the NADA guide

The NADA guide is the "go to" manual for everything you need to know about classics, exotics, muscles and hot rods. This guide makes it easy to discover how comparable vehicles are faring in the marketplace.

The NADA guide rates classic cars on a 100 point system that's broken into six categories ranging from perfect to parts. In most cases, the more perfect a vehicle, the more valuable it will be worth. The exception is when the vehicle comes to rarity. In which case, a vehicle that is extremely rare, but in bad condition, can still fetch a high price.

Consider restoration costs

Some classic cars can cost a pretty penny to restore. It is important for you to estimate how much these repairs will cost and weigh that alongside the purchase price.

For example, if you're looking at a 1940 Studebaker Champion that is being sold for $10,000, but will cost another $15,000 to restore, this isn't a good buy. Most other Champions of that year are being sold at around $20,000.

While you can speculate that a classic car will appreciate in value in the future, it's not a wise strategy to pursue.

Get the history information

Find out what you can about accidents, repairs and restoration work that has been done to the vehicle. You will want to know whether the work that has been performed on the vehicle was done by a professional or an amateur. You will also want to know whether or not the parts that have been put on the classic car are original or not. The more you can discover, the easier it will be for you to determine what the vehicle is truly worth.

Check the paperwork

You will want to ensure that all the papers are in order and that there is a clear line of ownership you can follow. Be sure to verify that registrations, bills of sale and maintenance papers are clear and readily presented when asked for. This verification will protect you from buying a classic car that the seller may or may not have the right to sell.

Develop your instincts

Buying classic cars as an investment is a skill that you will get better at with practice. Most importantly, it's important to develop your patience and take your time before making any purchases.

Contact Bill's Backyard Classics by calling (806) 373-8194 and we will be happy to tell you about the vehicles we have in our collection. Send us an email or you can also stop by our showroom at 5309 S. Washington St. in Amarillo, Texas to take a look around at our classic cars.